Vinamilk is the Most Chosen FMCG Brand in Vietnam
Kantar Worldpanel Brand Footprint Ranking identifies the Top 50 Most Chosen FMCG Brands in Vietnam, and Globally
The first ranking of the most chosen global FMCG brands launched by Kantar Worldpanel reveals the brands that are being bought by the most consumers, the most often.
Local consumers feel enormous pride towards local brands and their heritage, particularly in food, and it could be argued that local brands can also be more flexible and responsive to local consumer needs. This liking for local means global manufacturers must react to cultural differences and spend time understanding local consumers’ needs and wants to win shoppers’ hearts. The number 1 brand in Vietnam is Vinamilk, the local dairy giant with a long history in Vietnam. Vinamilk reaches nearly every Vietnamese household (94% population) with the frequency of purchase at 27 times per year on average, meaning it is chosen a total of 57 million times a year for in-home consumption, by consumers in 4 key urban cities of Vietnam (Ho Chi Minh, Hanoi, Danang, Cantho).
Globally, it is Coca-Cola that leads Kantar Worldpanel’s Brand Footprint ranking as the world’s most chosen brand, being chosen 5.3 billion times a year. The beverages drink manufacturer reaches its number one spot by combining a high penetration of 44% with the highest global frequency of purchase (15 times per year on average).
The report also highlights the opportunities for growth that exist, with only one brand in the world – Colgate – reaching more than half of the global population (65% penetration globally and 62% in Asia) with its oral care products. Colgate reaches 2 billion consumers in Asia by having excellent rural and urban distribution and by adapting to the local market with smaller pack sizes.
The emerging markets (Asia, Latin America and Saudi Arabia) are driving growth for most of the Top 50 FMCG brands in the Brand Footprint ranking, it reveals.
Kantar Worldpanel’s Brand Footprint Ranking reveals the strength of brands in 32 countries (and four regions) around the world, across the food, beverage, health and beauty and homecare sectors. It uses an insightful new metric called Consumer Reach Points which measures – for the first time – how many households around the world are buying a brand (its penetration) and how often (the number of times shoppers acquire the brand).
The unique calculation of penetration and frequency for this metric helps FMCG manufacturers to clearly understand their global reach in terms of actual basket reach and provides a vital guide on which regions present the biggest opportunities.
Fabrice Carrasco, Managing Director of Kantar Worldpanel Vietnam, Phillippines, Indonesia, says “Now brands demand more in-depth analysis of their current basket reach compared to their competitors and opportunities for growth around the world. The Brand Footprint report provides this. As the pressure to maintain and increase growth intensifies for FMCG manufacturers, brand consumer base expansion and significant increase of loyalty is more critical than ever. Consumer Reach Points reveals which brands are already achieving global success and provides insight that will help other FMCG brands with international ambitions to set global targets more accurately and improve their global business growth.”
Other key highlights include:
- Some manufacturers grow global by acquiring local – Availability in some emerging markets remains a challenge for global brands, which is why some manufacturers, such as Heinz, chose to acquire local brands. Purchases by Heinz (no 26 in the ranking) have given it control of the world’s number one Worcestershire sauce brand Lea & Perrins, Brazilian tomato-based sauce Quero and China’s premium soy sauce Master Weijixian.
- Globalisation is on the rise – Although international brand owners are driven by social- demographic and cultural trends, consumers often don’t differentiate between local and global brands. To achieve significant household penetration locally, a global brand must know its consumers intimately and not impose the brand’s home culture on the local market. Colgate, for instance, achieves 86% penetration in India compared to 65% globally by having excellent urban and rural availability and by adapting to the local market with smaller pack sizes.
- Only one brand reaches more than half of the world’s population – Colgate reaches 65% of the world’s population with its oral care products. Its penetration in the emerging markets is higher at 67%. It is dominant in the key emerging market countries of Brazil, India and China. Opportunities for growth remain for the brand in Indonesia and Korea where Colgate is not currently distributed, and in Vietnam where Colgate is currently not the category leader.
- Consumers in emerging markets are buying ‘faster foods’ – As shoppers across these fast growth markets become wealthier they are changing their cultural and shopping habits. Driven by an overwhelming need for convenience the Western ‘ready meal’ culture is gaining a foothold in markets like China, Colombia, the Philippines and Vietnam. Not ready to lose the home made taste, people are still cooking at home but are using ingredients that save them time. Maggi is the sixth biggest brand overall and has 1.4 billion Consumer Reach Points in the emerging markets alone (total of 1.6 billion globally). It is one of the 13 ‘Billionaire Brands’ in the ranking.